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Improvements to the Energy Policy Act may help save money and energy for commercial building owners.

A proposed new bill would provide additional incentives for owners to make energy efficiency improvements to commercial buildings.

The current law, set to expire in 2013, allows for tax deductions for energy efficient mechanical, lighting and building envelope improvements.

The proposed bill suggests a higher standard of energy efficiency than the current law. The provisions of the bill include an increase in the allowable deduction; partial allowances for the energy efficient part of an upgrade; and the introduction of a deduction for retrofits of existing commercial and multi-family buildings. The new bill may provide allowances that are especially attractive for REITs, real estate investment trusts.